3 Ways to Play the M&A Wave

Complex strategies like merger arbitrage can lead to nice returns

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3 Ways to Play the M&A Wave

Merger Fund

MergerFund185 3 Ways to Play the M&A WaveThe Merger Fund (MERFX), at $4.3 billion in assets under management, is one of the biggest (and most recognizable) names in the space.

MERFX has a steady track record, with a 15-year average annual return of about 5%, with an understandably high turnover ratio (currently 240%) weighing a bit on that performance. The key to its success? For one, top-notch managers including Roy Behren and Michael Shannon — both have more than two decades of experience with investing in buyout targets, and they have been at the Merger Fund’s helm since 2007.

The fund’s focus primarily is on larger, U.S.-based deals. Some of its most recent targets have been T-Mobile’s (TMUS) purchase of MetroPCS and Berkshire Hathaway’s (BRK.B) acquisition of Heinz.

Merger Fund has earned a four-star rating from Morningstar. It has no sales charge, expenses are a reasonable 1.27%, and it requires a minimum investment of just $2,000.


Article printed from InvestorPlace Media, http://investorplace.com/2013/06/3-ways-to-play-the-ma-wave/.

©2014 InvestorPlace Media, LLC

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